Via American Shipper by By Chris Dupin
The share price of the parent company of Orient Overseas Container Line (OOCL) continues to climb, mirroring frenzied speculation that the Hong Kong-based liner company may be acquired.
The latest articles include one in the Wall Street Journal that quotes unnamed sources that say COSCO is “in the process of preparing a bid worth more than $4 billion” for OOCL. Similar reports about COSCO’s interest have appeared in publications such as Tradewinds and the Chinese news site Caixin. COSCO and OOCL are both members of the Ocean Alliance, a vessel sharing agreement that is scheduled to launch in April. The other two members of the alliance – CMA CGM and Evergreen – have also been mentioned as possible acquirers or merger partners of OOCL.
Last week, Drewry Financial Research Center speculated that CMA CGM is “best positioned among major carriers to be a perfect suitor for OOIL.” Whether the rumors about a purchase of OOCL are true or not, the stock price of its parent company, Orient Overseas (International) Ltd. (OOIL), has been on a tear, climbing to 42.10 Hong Kong dollars (U.S. $5.43), up 33 percent from 31.55 Hong Kong dollars on Dec. 23.
Decisions about the future of the company are in the hands of the family of chief executive C.C. Tung, who holds a voting right for 68.7 percent of OOIL’s stock, according to its annual report last year.
